RE:RE:WHY Did Dominion Energy SELL The 3 Gas Utilities To ENB? Yup I'll keep mine and keep adding if possible. The market is skittish to big moves right now and that's why the price is down, signalling opportunity to me.
Despite what people are saying, the added debt isn't an issue. Most of Enbridge cash flow is on a gauranteed take or pay contract. Not only that but the distribution they provide is the last thing people stop using in a severe downturn, just look at their income during covid years. The assets pay their own way. Dominion let go of the assets to focus on their electricity build out. Enbridge took up the assets because they have experience in gas distribution and they want to expand it. They rightly know that gas distribution is a necessary utility. With population increases expected in the states where the assets are they are moving forward with an already in the ground, cash producing, expanding asset. Woth inflation increases that is also built into most of their contract agreements so the increased interest on debt is covered.
If the price is right, buying an existing asset is always better than building out a new one.